FxWirePro: Nikkei faces strong support at 55- EMA, good to sell on rallies

• Nikkei has shown slight recovery after hitting low of 19869 and jumped till 20111 at the time of writing. The index is expected to trade weak on account of strong yen. The index has formed a temporary top around 20319 and any further bullish continuation only above that level. It is currently trading around 20041 0.15% lower.
   
• USD/JPY jumped slightly after forming a low of 110.62 on Jul 24th. The pair has closed slightly above 100- day MA yesterday and is currently trading around 111.90. The major term resistance is around 114.50 and any break above targets 115.50. The minor resistance is around 112/113.
   
• On the lower side, index major support is around 19890 (55- day EMA) and any close below will drag the index down till 19688 (89 EMA)/19277 (May 18th 2017 low).
   
• The near term resistance of Nikkei is around 20400 (trend line joining 20230 and 20319) and break above will take the index to 20477 (161.8% retracement of 20019 and 19277) /20530 (161.8% retracement of 20220 and 19744)/20649 (161.8% retracement of 19698 and 18193).
     
• Short term bullish invalidation only below 19275.

It is good to sell on rallies around 20000 with SL around 20200 for the TP of 19690/19280.